____________ helps us to understand the problem of scarcity better, by showing what can be produced with given resources and technology.

Isoquant curve

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Production possibility frontier

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Giffen's paradox

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Isocost curve

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Solution

The correct option is A Production possibility frontier
Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. So it helps us to understand how the scarce resources are efficiently utilized in order to satisfy the wants of the people.

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Similar questions

Q. A _________ is the locus of all such combinations of two commodities which can be produced in a country with its given resources and technology.

Q. Draw a transformation curve, given the following possibilities of production (resources and technology remains constant). Also, find the marginal opportunity cost when more and more guns are produced in place of bread.

Guns(Units)	0	1	2	3	4	5
Bread (Units)	30	28	24	18	10	0

A country's resources are fully and efficiently employed. The problem of scarcity exists. What advice will be given to raise the efficiency level of the human resource to fight scarcity ?

Explain the problem of fuller utilisation of resources with the help of the production possibility curve.

Q. What is meant by production possibility curve? Illustrate with the help of a table and diagram.

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